GTRI is concerned about precious metals imports under India-UAE trade pact
import of precious metals from the UAE under a free trade agreement with India. GTRI demanded an investigation, citing the negative impact on the domestic jewellery industry and potential annual revenue loss for India, PTI reported.
The key issue centers around the India-UAE Comprehensive Economic Partnership Agreement (CEPA) that permits unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs in the coming years.
GTRI's report highlighted that addressing these issues is crucial to ensure the integrity of import practices, safeguard domestic industries, and prevent significant revenue losses. The report noted that the zero-tariff policy under CEPA could cause an annual revenue loss of Rs 63,375 crore due to duty-free imports of gold and silver, based on FY2024 import levels. This policy is also likely to shift import business from banks to a few private traders and replace top suppliers with Dubai-based firms.
«CEPA tariff concessions are hurting India's jewellery industry, with gold jewellery imports from the UAE increasing due to lower tariffs,» the report stated. It also pointed out that the zero tariffs on cut and polished diamonds under CEPA threaten India's domestic diamond industry, which currently benefits from zero duty on rough diamonds and a 5% duty on cut and polished diamonds.
GTRI emphasised the urgent need for a review of the agreement, noting that major imports are coming from Gift City, which has transparency issues. Currently, gold can be imported
